Sooner or later, most small businesses will probably need a business loan, whether itâ€™s for a growth or expansion project, investing in real estate or boosting capacity. There are few businesses that can launch or grow without bank financing, so to give them the best chance of succeeding in their application, there are easy ways to guide them through the process.
The key to a successful loan application is preparation. Small business owners should be aware from the start that the better prepared their application is, the more favorably theyâ€™ll be viewed. If they can show theyâ€™ve done their due diligence and done it well, this reflects on them as a person and as a business.
They need to be able to show how much they want to borrow, and what itâ€™s for, as well as what theyâ€™ll use to secure the loan, how much of their own money theyâ€™re planning to use, what other debts they have, and how they plan to service the loan repayments.
Providing a sound, well-constructed business plan is also essential, as are details on how they run their business, such as the management and operational structures, and their legal and accountancy advisors. Banks like to know as much as possible about a business and who runs it before agreeing to lend them money.
Read the full article at: business.tutsplus.com